Fallout from Royal Gorge Fire devastating for businesses

By Carie Canterbury

canterburyc@canoncitydailyrecord.com

Posted:
12/31/2013 07:41:34 PM MST

Fires burn structures near both ends of the Royal Gorge Bridge on Tuesday. The Royal Gorge Fire has burned about 3,800 acres south of the Royal Gorge Bridge and Arkansas River. (John Wark / Special to The Denver Post)

A photo of the Royal Gorge Fire just after it ignited south of the Royal Gorge Bridge on June 11. (Brandon Hopper / Daily Record)

The impact of the June 11 Royal Gorge Fire hit Cañon City hard. So hard, in fact, President Barack Obama in July declared a federal disaster designation for the Royal Gorge Fire area to make additional federal assistance available for recovery and mitigation in affected areas.

The six-day battle to fully contain the fire led to now a six-month period of individuals and businesses wondering how to make ends meet, and even keep their doors open, following the temporary closure of the Royal Gorge Bridge & Park.

City Councilman Kevin Ditmore said he didn't realize how many people relied on the tourist industry until they came forward during recent council meetings to express their struggle.

"This has really impacted a lot of people and their ability to make a living," he said.

Nearly a week after the fire, the Fremont County Tourism Council met in an emergency meeting to discuss how to get the word out to locals and to those across the state and country that even though the Royal Gorge Bridge temporarily was closed for cleanup and reconstruction, the welcome mat's still out for rafting, horseback riding, fishing, ziplining and other outdoor activities.

"Our major concern is on the economic impacts to this part of the region and what it's going to do to the local population in terms of businesses going out of business or tourism not being what it could or should be," said Larry Oddo, FCTC board chair, during a June meeting.

He said annually, the economic impact to the region based on visitorship to the Royal Gorge Bridge & Park is between $25 million and $30 million.

Anglers, rafting companies and other seasonal-based businesses lost precious days during the region's 2013 tourism season. Cancellations also affected hotels, restaurants and stores.

"Nobody is spending money in town right now," Beth Katchmar, vice-chair, said during a summertime FCTC meeting. "Nobody is shopping, nobody is eating out."

Fremont County Commissioner Ed Norden speaks Wednesday morning during a morning press conference about the Royal Gorge Fire. The fire has spread to 3,800 acres. (Michael Alcala / Daily Record)

The Royal Gorge Bridge & Park management team in September presented the City of Cañon City with a check for $1.062 million, one of the bi-annual check presentations made to the city each year. An additional check was expected to be forthcoming this month for about $620,000, but the bridge company in November said the amount is likely to be closer to $283,000; they also asked the council to consider the 2014 payment be based on actual revenue. If the council agrees, they anticipate the total payment to be about $504,000 for the fiscal year compared to the $1.6 million the city expected to receive in 2013.

The City of Cañon City eliminated nine positions Dec. 2 because of a "projected shortfall of income in 2014." The same day, about two dozen full-time Royal Gorge Bridge & Park employees were laid off, leaving 17 full-time employees in their positions, including management, supervisors and security personnel. The remaining workers will help to get the bridge reopened once construction is complete in August 2014.

PJ's Hitching Post was one of the businesses on top of Eight Mile Hill that was directly affected by the fire. Owner Paul Schmucker said in June most of the business' dollars came from tourists and that they've slowed 25-30 percent after the fire.

"It's been pretty slow. We felt (the affect) as far as the tourists go," Schmucker said in June.

In August, Lloyd Harwood, FCTC board member and manager of America's Best Value Inn & Suites, said other local hotel managers indicated lodging was down about 50 percent.

Also in August, the U.S. Small Business Administration offered low-interest working capital federal disaster loans to small businesses economically impacted by the Royal Gorge Fire.

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